Tips for Picking a Financial Adviser

By Katie Karlson

May 26, 2011

Women need to get the max from their money to cover longer lifespans and the occasional career hiatus.

"But I don't have that kind of money!" you might say. These days, getting the help of a pro doesn't have to cost much. Investing in one hour with a planner could add tens of thousands to your nest egg—and women need that boost. Start here:

Know the type. Fee-only advisers charge flat rates (expect to pay about $100–$250 an hour). Some advisers charge a rate based on a percentage of assets under management (usually 1% to 2%).

Others earn commissions by selling you insurance policies and investment products. While commission-based planners are common, expect some bias and hard sells. We recommend fee-only advisers. Check NAPFA.org for some in your area.

Reveal only as much as you feel comfortable: You don’t have to explain or justify your situation up front, Garrett says. And you don’t have to forge a life-long relationship. Basic plans and spot-checks are fine. Check ‘em out. Set up “get acquainted” meetings and ask each adviser to write up a proposal, including their fees, Garrett advises.